What are royalties?
Royalty is a percentage of revenue paid to a mineral owner from the production of oil and gas on his or her property.
Advantages of Mineral Rights & Royalties:
- Zero Drilling Liabilities
- Zero Drilling Costs
- No Debt
- Tax Advantaged Income – 15% Tax Depletion Allowance
* This percentage range is not guaranteed and will vary based on individual lease agreements.
How Do Mineral Owners Get Paid a Royalty?1.Mineral owners do not drill wells. As owners of deeded, subsurface real estate, they are entitled to a royalty share of revenue resulting from the production of oil and gas from their properties.
2.As energy companies such as Exxon Mobil, Marathon and Continental Resources and all other energy producers that drill wells and produce hydrocarbons on a property, they are required to pay a royalty to the landowners, i.e. Mineral Owners. The energy companies, known as operators, pay all drilling and operating expenses in addition to assuming all drilling risks and liabilities.
3.Mineral Owners receive monthly royalty payments from the energy companies based on the oil and gas that is produced on their property. These payments are generally 12-25% of the total gross revenue.
The largest single recipient of royalty income is the U.S. Department of the Treasury as based on the production revenue generated from wells drilled on federal land.
Every single well in America pays royalties to someone.
Resource Royalty primarily focuses on acquiring mineral and royalty properties in the STACK, Merge, and SCOOP plays in the Anadarko Basin in Oklahoma.
These areas are some of the most prolific and active regions in the country, They are characterized by their large amounts of recoverable reserves, favorable economics, and stacked layers of recoverable oil and gas reserves, i.e. stacked pay zones.
The Shale Revolution
A New Day… For Royalty Owners
An explanation of how horizontal drilling works.